Business Diploma: Risk Management Report - Analysis and Strategies

This report provides a comprehensive overview of risk management in a business context. It begins by exploring three research methods for addressing risk-related issues: quantitative, qualitative, and semi-quantitative analysis. The report then delves into tools like Fishbone diagrams, checklists, and brainstorming for identifying potential problems. It outlines the five stages of risk likelihood and provides examples of consequences, treatments, and physical risks such as theft and unauthorized access. The report discusses the role of international risk management standards and the components of a successful risk management plan. It examines various types of insurances, including public liability and workers' compensation, as well as relevant legislation like WHS regulations and contract law. The report also highlights essential policies and procedures, including compliance and financial management. Furthermore, it explores different types of risk based on hazard and uncertainty and discusses compulsory insurance. The key parts of a risk management action plan and steps to prioritize risk are also covered. Finally, the report concludes by matching up terms related to risk management, providing a solid foundation for understanding and implementing effective risk management strategies. The report is available on Desklib, a platform for students offering past papers and solved assignments.

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Table of Contents
1. Three ways to research risk-related issues...........................................................................................2
2. Fishbone, Checklists, and brainstorming.............................................................................................2
3. Five stages of risk likelihood...............................................................................................................3
4. Examples.............................................................................................................................................3
5. Three treatments for treating the risk...................................................................................................4
6. Physical risks.......................................................................................................................................4
7. Name of the organization.....................................................................................................................5
8. Success in risk management plan........................................................................................................5
9. Examples.............................................................................................................................................5
10. Types of insurances.........................................................................................................................6
11. Types of legislation.........................................................................................................................6
12. Examples of policies and procedures...............................................................................................7
13. Risk.................................................................................................................................................7
14. Compulsory insurance.....................................................................................................................8
15. Key parts of action plan...................................................................................................................8
16. Prioritize risk...................................................................................................................................8
17. Act...................................................................................................................................................8
18. Match up.........................................................................................................................................9
Bibliography...............................................................................................................................................10

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1. Three ways to research risk-related issues
 Quantitative analysis
This analysis uses the numerical values for the analysis of risk consequences and likelihood. The
analysis quality is depending on the data from which the organization was initially sourced. This
kind of outcome can be expressed within the monetary, technical, and many others.
 Qualitative analysis
This is useful as the initial screening to identify and analyze the required risk. This kind of
analysis is important for the decisions while numerical sources and data are inadequate.
 Semi-quantitative analysis
Sets' values in the risk produce the expanded ranking scale that is achievable through the
qualitative analysis. These kinds of values are not estimated realistic figures calculated within the
quantitative analysis. This is significant for the organization to analyze the form of limitations
and combined them through the explanation or formula.
2. Fishbone, Checklists, and brainstorming
 Fishbone diagram
It is known as the cause and effect diagram. This is a visualization tool to categorize the potential
problem caused by the order to find the root causes. This is very important to use while many
chances cause the problem to occur.
 Checklists
It serves as the thinking tool that ensures the group has looked to the projects and environment
through all aspects while signed off from the risk of the list. Consideration helps to foreseeable
the risk such as change of staff within the critical vendor. It is very important to identify the risk
in a particular context as significant for interrogating the components.
 Brainstorming

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This is used for creating ideas. It does not include analysis. This is effective to generate many
ideas within a short time. Brainstorming techniques can be used like silent brainstorming and
structured brainstorming.
3. Five stages of risk likelihood
 Almost certain
In this stage, there are higher chances of the risk likelihood with the most frequently and
constantly.
 Possible
This phase of risk likelihood can happen occasionally within the business.
 Likely
This stage of risk likelihood presents that it happen probably with the not persistent problem.
 Rare
In this phase, there are unlikely chances that risk will ever happen.
 Unlikely
There is no expectation regarding the unlikely of risk likelihood but possible in business
situations (Vilko, & Hallikas, 2012).
4. Examples
 Extreme consequences
This has an adverse influence on important areas like huge reduction/loss within the enrolment of
a student in the college.
 Moderate consequences
The short term damage in the partnership can be repaired.

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 Major consequences
The effective management within the organization can manage the business from the issues like
loss of government funding due to the low enrolment.
 Insignificant consequences
This kind of risk happened due to the minor reduction within the enrolments of the student.
 Minor consequences
This kind of risk likelihood can be happened due to the moderate reduction within the enrolment
of the student.
5. Three treatments for treating the risk
Organization by identifying the risk likelihood becomes more capable to increase the possible
and beneficial outcomes.
It is important to share the risk with the parties which contribute to the business to provide
additional information. This also brings more opportunities for businesses to get higher benefits.
Resources within the business improve the likelihood of the expectation as manipulating the
probable consequences for improving the expected gains.
6. Physical risks
Physical risk includes the risks relating to the employees, assets, and buildings. The particular
physical risks which organization can face are thefts within the business and electricity issue
(Kliem, & Ludin, 2019).
 Theft
To control the theft within the business organization should use the CCTV camera as the
engineering control and record daily as the administrative control. It will save the organization
from the higher cost.
 Unauthorized access

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To control the unauthorized access organization should use the biometric system within the
operational areas of the organization as the engineering control. It will also keep the record of the
access person and save the organization from the higher losses as the administrative control.
7. Name of the organization
International risk management standards AS/NZS ISO 31000; 2009 give the guidelines and
principles to manage the risk. Thales that adopts the risk management principle ensures the
standards and works to comply with the principles to ensure that management of risk is more
effective.
8. Success in the risk management plan
A risk management plan helps businesses to get success by establishing the internal and external
risk lists. This kind of plan should include the risk probability with the occurrence and proposed
actions. It will minimize the negativity with little or no impact on the schedule, cost, and
performance (Hopkin, 2018).
9. Examples
 Providing equipment
The software of the computer is like voice recognition.
The machine of the telephone typewriter is to hear the impaired workers.
The tape recorder will help to leave and take the messages regarding the physically impaired
individuals.
 Training and development
Notes of Audio are useful for visually impaired workers.
 Access to workplace
Lifts within the organization should have lowered panels of control.

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Emergency mobile phones within the organization are useful to maintain the operations more
effectively.
10. Types of insurances
 Public liability
This protects the named business, paid employees, and volunteers regarding the legal liability to
the third party personal injury. Coverage is organized to support the paid employees and
volunteers as includes the legal actions against third parties and clients. This also saves the
business by delivering coverage against the liability of the third party.
 Volunteer employees’ accident
It includes the accidental death or injury that results from the investment in authorized volunteer
actions and covers the weekly benefits payment as engaged within the many voluntary actions.
The businesses do not need to compensate within the case of a volunteer accident.
 Directors and officers indemnity liability and voluntary boards of management
Actions regarding the alleged negligence as protecting the organization from the indemnity
liability that arises due to any act.
 Property insurance
This helps business to protect the business from the outsiders as not allow the unauthorized
person within the business.
 Workers compensation insurance
This is supportive of the businesses as providing safety to employees to work in a low-risk
environment (Johannsdottir, 2014).
11. Types of legislation
 WHS regulations

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It includes the model WHS Act, codes of practices and the national compliance and the policies
of enforcement. This act forms the base of the WHS acts and enacted within Australia to
harmonize low regarding the work health and safety. The businesses are needed to meet the fixed
standards to save from the penalty because of the non-compliance of the law.
 Contract law
This encompasses the laws and regulations that directed to enforce particular promises. Contract
law in Australia is regulated through the common law and increasing the statutes. These are
supplementing the particular law of contract specifically about the protection of customers.
12. Examples of policies and procedures
 Compliance
There should be compliance within the organization to acknowledge the responsibilities and
comply with the policies and procedures of risk management. Every employee and management
within the organization is responsible to manage and establish compliance with effective
activities.
 Financial management policies and procedures
It includes the planning, organizing, directing, and controlling the financial actions like
procurement and utilization of organization funds. This includes the application of general
management principles to financial sources of the enterprise.
13. Risk
 Acceptable risk
It refers to the human and property loss level which can be tolerated by the individual, group,
household, business, region, nation, and community. For example, the risk of flooding can be
accepted within 500 years but not every 10 years.
 Hazard based risk

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It refers to the level of threat to the environment, life, property, and health. Hazards are dormant
with the theoretical risk of harm. While hazard becomes active, this can make the situation of
emergency.
 Uncertainty based risk
This risk is known as the form of uncertainty within the unexpected events. This is very typical
to predict the events and damage. This is very hard to manage the damage (Sadgrove, 2016).
14. Compulsory insurance
This is very important for employers to have a broader range of insurance and protect the
business against the dangers. The compulsory insurances are worker’s compensation insurance,
vehicle insurance, and general liability insurance.
15. Key parts of the action plan
Key parts of the action plan for implementing the risk treatment include the organization's
mission. It includes the collection of data that bears within the platform and presents the current
state. This includes the crucial factors of success that right for success. The organization has the
objective to establish the goals. The organization also set the objectives, measures, and target
dates. In the last, it is considered that the action plan is drawn from the result of the last five
phases.
16. Prioritize risk
This helps businesses to identify the events of risk, its impact assessment, and probabilities of
occurrences which are the processed for deriving the most to least crucial rank order to identify
the risks. It forms the basis to allocate the resources. Steps in Prioritise the risk are risk-based
filtering, verification checks, supplier management, materials and chemicals, job safety analysis,
and reporting (Kaigorodova, & Mustafina, 2014).
17. Act
Rights for the person with disabilities act.

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18. Match up
Consequences – The impact on the organization or individual resulting from an event or sequence of
events, which may be expressed quantitatively or qualitatively.
Scope – The span of interest for a risk management process. May include a specific project, business
unit, specific function, internal or external environment, whole organization.
Risk ranking – A process of rating risk according to the severity and likelihood to determine the priority
for treatment or control of risk. Also known as “Prioritisation”
Consultation – The process of seeking information about informed opinions from one or more people
before the decision-making.
Likelihood – A colloquial term of ‘probability'. When related to risk, it is the probability of the occurrence
of the stated consequences.

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Bibliography
Hopkin, P., 2018. Fundamentals of risk management: understanding, evaluating and implementing
effective risk management. Kogan Page Publishers.
Johannsdottir, L., 2014. Transforming the linear insurance business model to a closed-loop insurance
model: a case study of Nordic non-life insurers. Journal of cleaner production, 83, pp.341-355.
Kaigorodova, G.N., and Mustafina, A.A., 2014. The influence of forms of insurance coverage organization
on the population's life quality. Mediterranean Journal of Social Sciences, 5(24), p.118.
Kliem, R.L. and Ludin, I.S., 2019. Reducing project risk. Routledge.
Sadgrove, K., 2016. The complete guide to business risk management. Routledge.
Vilko, J.P. and Hallikas, J.M., 2012. Risk assessment in multimodal supply chains. International Journal of
Production Economics, 140(2), pp.586-595.